Having slashed losses by 56% to £3.2 million compared to £7.3 million last year, Hurricane is now in a hurry to secure farm-out contracts for Lancaster.
Dr Robert Trice, Chief Executive, commented: “Our primary focus continues to be working towards achieving first oil on Lancaster. We are making excellent technical progress and discussions are ongoing with a short list of interested parties.”
Jefferies International is helping Hurricane in conducting a formal farm-out process to attract an industry partner into some or all of the Group’s assets. Following the successful drilling and testing of the Lancaster appraisal well 205/21a-6 in 2014, a comprehensive data room has been made available to potential farm-in partners. Hurricane is engaged with a short list of interested parties and an announcement will be made in due course as appropriate.
In July 2015 Hurricane was successful in its applications for two further West of Shetland blocks in the Oil and Gas Authority’s 28th Offshore Licensing Round Second Tranche of Offers.
Hurricane’s applications for blocks 204/30b and 205/26d were based both on the identification of a new basement prospect, provisionally named Warwick, which is considered to be analogous to the Lancaster basement discovery; as well as on the additional prospectivity offered from the extension of the Group’s Lincoln prospect into block 204/30b.
The licences offered have a work commitment to ‘drill or drop’ on either of the identified prospects which, following the implementation of a successful Lancaster EPS, will provide Hurricane with the potential for further high value, relatively low-risk, near-field exploration.